ACCT2 - Chapter 20 Quiz A

Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. During the period, 4,000 units of direct materials were added at a cost of $8,200 and 4,500 units were completed. At the end of the period, 500 units were 40% completed. All materials are added at the beginning of the process. Direct labor was $28,700, and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

$2,645

If 10,000 units that were 50% completed were in process on November 1, 90,000 units were completed during November, and 20,000 units were 20% completed on November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)

False

If 30,000 units of materials enter production during the first year of operations, 25,000 of the units are finished, and 5,000 are 50% completed, the number of equivalent units of production would be 28,500.

False

A process cost system would be appropriate for a

natural gas refinery

Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete. The equivalent units totaled 30,200.

False

The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 8,217 Conversion costs, 3,000 units, 40% completed 5,544 Materials added during April, 10,000 units 27,084 Conversion costs during April 34,720 Goods finished during April, 12,000 units 0 April 30 work in process, 1,000 units, 40% completed 0 All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

$3.10

Use this information about Department S to answer the question that follow. Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000. During the period, 9,000 units were completed, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500, and factory overhead was $9,900. The total conversion costs for the period were

$59,400

Use this information about Department G to answer the question that follow. Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $40,000 Costs added during period: Direct materials (10,400 units at $8) 83,200 Direct labor 63,000 Factory overhead 25,000 All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of 3,600 units of beginning inventory that were completed during the period (round unit cost calculations to whole dollars)?

$62,206

Use this information about Department G to answer the question that follow. Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $60,000 Costs added during period: Direct materials (10,400 units at $9.8365) 102,300 Direct labor 79,800 Factory overhead 25,200 Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, determine the direct materials cost and conversion cost per unit (rounded to the nearest cent), respectively.

$9.84 and $9.58

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period. During the period, 30,000 units of direct materials were added, 32,000 units were completed, and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

29,450

Use this information about Department A to answer the question that follow. Department A had 5,000 units in Work in Process that were 60% completed as to labor and overhead at the beginning of the period. 34,000 units of direct materials were added during the period, 31,000 units were completed during the period, and 8,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

34,400

Use this information about Carmelita Inc. to answer the question that follow. Carmelita Inc. has the following information available: Costs from Beginning Inventory Costs from Current Period Direct materials $2,000 $ 22,252 Conversion costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The equivalent units of production for direct materials and conversion costs, respectively, were

4,840 for direct materials and 4,802 for conversion costs

Use this information about Super Co. to answer the question that follow. The following unit data were assembled for the assembly process of Super Co. for the month of April. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO method. Units Beginning work in process (60% completed) 5,000 Units started in April 48,000 Ending work in process (30% completed) 4,000 The number of equivalent units produced with respect to conversion costs is

46,200

If a company uses a process costing system to account for the costs in its five production departments, how many work in process accounts will it use?

5

Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 30% completed at the end of June. Using the first-in, first-out method of inventory costing, what was the number of equivalent units of production for conversion costs for the period?

5,850 units

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1, 25% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs.

575 units

In a process costing system, each process will have a work in process inventory account.

True

The amount journalized showing the cost added to finished goods is taken from the cost of production report.

True

The cost of production report reports the costs charged to production and the costs allocated to finished goods and work in process.

True

Equivalent production units are generally determined for

direct materials and conversion costs